Khadi Reform and Development Programme

Khadi Reform and Development Programme (KRDP)

Khadi Reform and Development Programme (KRDP)

Khadi Reform and Development Programme (KRDP) aims to revive the Khadi sector with enhanced sustainability of khadi, increased incomes and employment for spinner and weavers, increased artisans welfare and to achieve co-operation with village industry. The main focus of this scheme is on the re-positioning of Khadi and linking to market requirements, providing selective subsidy and enhanced remuneration. KRDP is implemented with assistance from Asian Development Bank (ADB) include setting up of a Marketing Organisation under Public Private Partnership (PPP) to promote Khadi sector. In this article, we look at the Khadi Reform and Development Programme (KRDP) in detail.

To know about Khadi and Village Industries Commission (KVIC) click here

Objectives of the Scheme

The objectives of the Khadi Reform and Development Programme are explained below.

  • To strengthen the better earning for artisans and make them involved in the implementation of the Khadi Reform and Development Programme.
  • To position khadi with the current market requirements and develop khadi as a global brand.
  • To provide support for the development of five identified traditional village industries such as handmade paper, honey, herbal health and cosmetics, leather and agro-food processing industry.

Reforms at Khadi Institution Level

The reforms at Khadi Institution level are as follows.

  • To the extent of Rs. 1.20 Crore will be provided as the assistance to 300 existing khadi institutions. Under this programme modernisation of 1200 outlets of Khadi, institutions will take place.
  • Through the introduction of new implements such as charkha, loom and fabric processing equipment nearly 1.50 lakhs artisans will be employed.
  • The khadi institutions will be supported to work in SHG mode and nominate a representative of Self Help Groups (SHGs) in the managing committees.
  • Assistance for 50 new khadi institutions is given, and those are to be organised and managed either on entrepreneurship model or producer company model.
  • The number of artisans employed by Khadi Institutions (KIs) will be increased by 15%.
  • The earnings of Khadi artisans will be increased by 20%.
  • The annual sales compounded basis will be increased by 20%.
  • The raw material (Slivers) production cost will be decreased by 15%.

Benefits of KRDP for Artisans

All artisans involved in Khadi activities will receive the following benefits:

  • KRDP will offer scope for a significant increase in artisans earnings.
  • Implementation of modified Market Development Assistance (MDA) will provide additional incentives to all artisans and special incentive to spinners.
  • Payment of wages to artisans through bank or post office account will encourage artisans to plan savings for future betterment.
  • The proposed professional marketing strategies by Marketing Organisation will enhance earning opportunity of artisans.
  • Development of new product through regular skill up-gradation programme will assure increased earning.
  • Artisans participating in the governing body of the institution will enable a better understanding of khadi activities among the artisans to enhance the growth of the institution.
  • Artisans can establish khadi institutions under Producer Company model to assure entrepreneurship among the artisans.
  • Through khadi mark global recognition of hand spinning and hand weaving is given.

Benefits of KRDP for Institutions

The direct reform support is provided to 300 Khadi Institutions engaged in the production and marketing of khadi and its products. The details of support given to Khadi institutions are:

  • Assistance to the extent of Rs.71.00 lakhs for a total revamping of productive infrastructures such as charkha, looms and establishment of common facilities is performed.
  • Assistance to the extent of Rs. 48.00 lakhs is provided for modernisation of sales infrastructure including store layout, inventory management and local publicity.
  • The secretary /chairman of the Khadi institution will get all information about production, sale, expenditure and earning etc. through  Computerisation of the khadi institutions.
  • To assist the institution in managing activities effectively and achieve desired results support is given for reform implementing officer.
  • Training to office, staff, artisans are given to equip them to work more efficiently.
  • Assistance to the extent of Rs. 14.00 lakhs as margin money for working capital to enable mobilisation of bank finance under ISEC scheme of KVIC.

Benefits of KRDP for all Khadi Institutions

The following are the benefits of Khadi Institutions.

  • Issuance of Khadi Mark to all khadi producing institutions to restrict unauthorised use of ‘khadi’.
  • Access to the new market will be given through a professionally managed Marketing Organisation (MO).  The MO will assist the Khadi Institutions (KIs) to produce market-oriented products.
  • Support of MO will be possible to KIs for product design inputs and product catalogue preparation etc.
  • Opening of 20 new sales outlets by MO will open avenues for all KIs to boost the overall sale.
  • Supply of uninterrupted quality raw material at a reduced price through the introduction of PPP in existing Central Sliver Plants (CSPs).
  • Adoption of the benefits by institutions and pricing their khadi products as determined by the market forces will help them to earn an excess of production, and that can be used for the development of the institutional activities.
  • The institutions can use a portion of modified MDA, as visualised in KRDP, to promote the khadi activities further.

Marketing Organisation

A marketing organisation will be placed with majority private partnership to bring the modern concept of marketing in the sector. Twenty khadi plazas will be established in the metro, mini-metro and capital cities in the country.

Training and Development of Artisans

KVIC will conduct a training programme for skill development of artisans. Training programme for artisans will also be organised to enable them to participate in the management of Khadi institutions.

Application Form

Khadi Reform and Development Program (KRDP) implemented with assistance from the Asian Development Bank (ADB) include establishing of a Marketing Organisation under Public Private Partnership (PPP) to promote Khadi sector.

The application form Khadi Reform and Development Program (KRDP) under ADB assistance is reproduced below for your reference.

Action Plan KRDP-revised-11.7.14

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